A Corporation wants to increase its current ratio from its present level of 1.2 before it ends the fiscal year. The action having the desired effect is:
A) delaying the next payroll.
B) writing down impaired assets.
C) selling furniture for cash.
D) selling current marketable securities at cash for their book value.

Question

Quizplus · Accepted Answer

Selling furniture for cash increases current assets without affecting current liabilities, thus improving the current ratio.

A Corporation Wants to Increase Its Current Ratio from Its